EUR/USD Daily Forecast – Resistance At 1.1750 Stays Strong

Euro Declines Against U.S. Dollar

EUR/USD faced resistance near 1.1750 and is moving towards the support level at 1.1720 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently managed to get back above the 93 level and is trying to get to the test of the resistance at 93.10. If the U.S. Dollar Index gets above the resistance at 93.10, it will gain additional upside momentum and move closer to the next resistance level at 93.40 which will be bearish for EUR/USD.

Today, Germany will release Ifo Business Climate report for August which is expected to show that Business Climate index declined from 100.8 in July to 100.4 in August.

In the U.S., foreign exchange market traders will focus on Durable Goods Orders report which is projected to indicate that Durable Goods Orders declined by 0.3% month-over-month in July.

It should be noted that today’s trading session may be choppy ahead of the Jackson Hole Symposium which will start on August 26. Any hawkish signals from the Fed may provide significant support to U.S. dollar and reinforce its current bullish trend.

Technical Analysis

EUR/USD made an attempt to settle above the resistance at the 20 EMA at 1.1750 but failed to develop sufficient upside momentum and pulled back. Currently, EUR/USD is moving towards the nearest support level which is located at 1.1720.

If EUR/USD declines below this level, it will head towards the support at 1.1690. A move below the support at 1.1690 will open the way to the test of the next support near the recent lows at 1.1660.

On the upside, EUR/USD needs to get above the 20 EMA to have a chance to gain additional upside momentum. In case EUR/USD settles above 1.1750, it will head towards the resistance at 1.1775.

A move above 1.1775 will push EUR/USD towards the resistance level at 1.1800. If EUR/USD manages to settle above 1.1800, it will get to the test of the next resistance level which is located at the 50 EMA at 1.1815.

For a look at all of today’s economic events, check out our economic calendar.